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The deNFT Onlyups.xyz is all set to disrupt the NFT market with its upward moving trait

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The deNFT Onlyups.xyz is all set to disrupt the NFT market with its upward moving trait

August 01
23:41 2022
The deNFT Onlyups.xyz is all set to disrupt the NFT market with its upward moving trait
OnlyUps.xyz, as the name suggests, are deNFTs (DeFi NFTs) locked to do just one thing: go up.

Onlyups.xyz, a deNFT that is tradeable only on NFT marketplace OpenSea, has debuted to disrupt the NFT world. The Onlyups.xyz tokens are using DeFi technology while using hardcoded line-goes-up-forever pricing curves.

The original DeFi NFT – Aavegotchi – has also seen a sharp surge in popularity as deNFT wave gains traction amid DeFi community. Aavegotchis are rare crypto-collectibles living on the Ethereum blockchain, backed by the ERC-721 standard used in popular blockchain games such as CryptoKitties, Axie Infinity, and Cryptovoxels. Aavegotchis possess three attributes that determine their overall value and rarity within the Aavegotchi universe: collateral stake, traits, and wearables.

Each Aavegotchi ERC721 NFT manages an escrow contract address that holds an Aave-backed ERC20 collateral, or “aToken”. aTokens generate yield via Aave’s Lending Pool, which increases the quantity of aTokens held in the wallet. Thus, the amount of aTokens held in the Aavegotchi’s escrow address grows over time. The valuation of a deNFT comes from both from its intrinsic value and from its rarity value.

Intrinsic value is the denominated value of the staked collateral. For example, if the Aavegotchi is staked with 10 aDAI, then the intrinsic value would be 10 aDAI, plus whatever extra aDAI has accrued from the Lending Pool. Initially, only ERC20 tokens listed on the Aave platform (aTokens) will be available as collaterals. However, once AavegotchiDAO launches, the community will be able to vote on which new collaterals to allow.

Rarity value is determined by calculating the rareness of each of deNFT traits and equipped wearables within the deNFT ecosystem. Unlike other NFT games, rarity is not a fixed value in Aavegotchi. It can change over time as Aavegotchis level up and equip different wearables. Thus, a rare Aavegotchi one week could become common, and vice versa, depending on the overall distribution of traits and wearables within the Aavegotchi universe. This enables a novel concept known as “rarity farming”.

The lead developer of the project onlyups.xyz, Daniel (@danie1) described OnlyUps as an implementation of a positive-sum game theory and a “first-ever true DeFi on OpenSea”.

He added that the token utilizes a new version of the OpenSea contracts that unlocks DeFi capability on the marketplace.

Daniel noted that the OnlyUps collection has some interesting game theory fundamentals supporting the DeFi experiment: each sale constitutes a step towards convergence to a continuously shifting equilibrium point.

As OnlyUps are locked to OpenSea transfers (buys/sales) only, the only strategy available to the holders is maximizing each other’s payoff. He further commented that OnlyUps should be conceptually perceived as a DeFi non-fungible CD (Certificates of Deposit) instruments that continuously accrue value for its holders over time.

At the moment, OnlyUps.xyz is considered to be one of the two blue-chip tokens riding the DeFi-on-NFT (deNFT) trend: along with Aavegotchis, an AAVE-based yield-generating NFT, these NFTs feed off the on-chain DeFi ecosystems under the hood of their corresponding tokens. In the broader context, this DeFi total value locked (TVL) metric saw an uptick this week as well – up 1.84% to the total TVL of 90.38 billion USD.

Productive assets like these are promising to bring utility to the reputed NFTs. Whether or not this latest up-and-coming trend of deNFTs captures a significant share of the larger NFT market remains to be seen.  

About Onlyups.xyz

OnlyUps.xyz, as the name suggests, are deNFTs (DeFi NFTs) locked to do just one thing: go up. 

Visit OnlyUps opensea page here: https://opensea.io/collection/onlyups

Media Contact
Company Name: Onlyups.xyz
Contact Person: Daniel Dolton
Email: Send Email
City: London
Country: United Kingdom
Website: https://onlyups.xyz

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